According to the USDA Outlook, "Corn production is forecast at a record 13.3 billion bushels, up 254 million from last
month, because of higher yields. The forecast yield of 155.8 bushels per acre would be
the second highest ever. Sorghum yields are also forecast at a record 73.9 bushels per
acre. Sorghum production is forecast at 495 million bushels. Ethanol production
forecast was lowered for both 2006/07 and in 2007/08, based on current capacity and
reported production. Exports were raised this month to offset lower grains production in other parts of the world. Prices for feed grains remain strong, supported by record wheat and strong soybean prices.

Supported by record wheat and strong soybean prices, the forecast corn price for 2007/08 is $2.80-$3.40 per bushel, unchanged from last month. In 2006/07, the season-average price received by farmers is expected to be $3.03 per bushel."